Ghana: GRIDCo To Undertake Mass COVID-19 Test After A Staff Tested PositiveFor three consecutive years, GRIDCo has been recording losses with a net loss of GH¢114.3 million in 2019. Even in 2015 when the GRIDCo produced a good financial results, with total revenue of GH¢472.345 million and net profit of GH¢44.797 million, most of the profit recorded was in debt. The current happenings thus clearly indicate that the year 2020 may experience another round of losses for State power utilities. Remedial Actions The Institute of Energy Security (IES), fears that the toughest leadership test is approaching, where government and its allied institutions in the power sector would have to show how they intend to bring back power utilities into cost-effective and profit ways. The most appropriate module could be for the Government to reimagine its approach in dealing with debts in the sector, should it be willing to return power sector institutions to profit ways. Most critically, Government must proffer new ways in which to recover revenues owed the GRIDCo from institutions, whether private or state, and from the Energy Sector Levy Act (ESLA) Fund. The ECG must deal with the high commercial and technical losses in its system, and must commit to clearing all the debt owed GRIDCo, to guarantee reliable power supply to its distribution network. While the GRIDCo waits to receive payment from the ECG, or better still receive revival from the sharing of the ESLA Fund to help boost the finance of the company, Management of the company must focused on pursuing the debts owed by the ECG and other defaulting customers. GRIDCo must also consider cutting back on some of expenses (including CAPEX), focusing on those that are necessary to produce a robust transmission system, to manage the current challenges.
Ghana: GRIDCo’s Debt Recovery From The ECG Worsens: IES Analysis
From data collated by the Institute for Energy Security (IES), the debt of GH¢850.993 million owed to the Ghana Grid Company (GRIDco) by the Electricity Company of Ghana (ECG) in December 2019 has shot up by almost 31 percent to GH¢1.114 billion as of end June 2020.
The Institute’s trend analysis of cash receivables of the GRIDCo in the first half of year 2020 (HY1/2020) indicate that the receivables profile of the power transmitter is growing worse. The analysis revealed that as of January 2020 the total debt owed to the GRIDco by ECG was GH¢902.865 million, from December 2019’s figure of GH¢850.993 million.
The monthly analysis done for the HY1/2020 showed that the amount owed by the ECG to GRIDCo totalled GH¢451.468 million. However, the ECG paid only GH¢188.198 million representing 41.69 percent of total invoices issued. For instance, at end January 2020, GRIDCo invoiced the ECG GH¢74.872 million, made up of GH¢68.558 million in Transmission Service Charge (TSC) and GH¢6.314 million as Regulatory (PURC) Levy for power transmitted for the ECG in January, sending total outstanding debt to GH¢902.865 million. Out of total monthly invoice of GH¢74.872 million, the ECG paid only GH¢23.0 million, representing 30.7 percent of invoiced amount, as shown in Table 1 and Graph 1 below.
Month Total Bill (Gh¢ ‘000’) Total Paid (Gh¢ ‘000’) % Paid
Jan 74,872 23,000 30.72
Feb 75,460 30,000 39.76
Mar 78,825 37,000 46.94
Apr 72,564 14,753 20.33
May 78,231 37,175 47.52
Jun 71,516 46,270 64.70
451,468 188,198 41.69
The payments of February to June invoices by the ECG followed a similar pattern; suggesting a huge payment gap. The analysis shows that the ECG currently piles up close to GH¢11.0 million debt per week, as GRIDCo’s outstanding receivables rises to GH¢1.114 billion at end June 2020. Meanwhile GRIDCo bills ECG about GH¢19 million per week, of which they pay roughly GH¢8.0 million per week. Compared to 2017 when the GRIDCo used to receive close to GH¢8.0 million per week from a billing rate of GH¢13.0 million per week, the current debt recovery rate is nothing but worse.
Because of the increasing payment gap, the outstanding debt of ECG to the GRIDCo is found to be increasing at an astronomical rate. Data shows GRIDCo’s receivables from the ECG is increasing despite government clearing its indebtedness to the ECG at end 2019, leaving a credit in excess of GH¢500.0 million, enough to cover its bill for January 2020 to April 2020.
In March 2020, the Government committed to fully absorbing the electricity bills for all lifeline consumers for 3 months beginning April 2020. It also offered to pay 50 percent of the electricity bill for residential and commercial consumers for the period, using the March 2020 bill as the benchmark. Therefore, the logical expectation was at least 90 percent full debt recovery for both the ECG and GRIDCo, if the Government committed to his promise of paying for the electricity used by the people of Ghana. That was not to be, and Government has proceeded to extend the freebies to the aforementioned category of consumers, for an additional 3 months.
IES’ provisional projection based on the trend analysis, depicts that the debt position of ECG to GRIDCo could hit roughly 1.4 billion by the end of December 2020 should the ECG continue to pile up debt of close to GH¢11.0 million debt per week. The projected figure could be higher if government fails to pay fully the bills it has committed to take for consumers.
The IES is not against providing social protection programs for Ghanaians in these times of hardship caused by the COVID pandemic. In fact, the IES is strongly for it. However, the IES abhor policies that are targeted to see vital institutions whose contribution promotes economic development go down the drain due to political decisions that can go wrong.
Impact On GRIDCo
Aside the ECG, the indebtedness of the Northern Electricity Distribution Company (NEDCo), the Volta Aluminum Company (VALCO) and some mining companies to the GRIDCo, coupled with the depreciation of the Ghana cedi, contributes to the financial woes of the GRIDCo.
The debts owed by these companies to the GRIDCo is rising to unprecedented levels, and may likely render GRIDCo incapable of executing its critical projects that would make the national transmission system robust and improve reliability of power supply. It could negatively influence the day-to-day operations of the company, and could lead to the stalling of the many key projects undertaking by the company to improve on operations and efficiency, if not checked. The increase debts that translate into financial constraints may also make it difficult for the transmitter to meet its financial obligations to financiers, contractors, suppliers and service providers among others. The bad financial state of the company induced by increased receivables could result in increased payables and deterioration of its working revenue, and by extension produce financial losses.
German Energy Investors Have A Bright Future In A Post-Covid 19 Africa
The Germany-Africa Business Forum (GABF) will on Thursday, August 6, 2020, organise an exclusive webinar to encourage new deals between German and African public and private energy stakeholders.
In a statement issued Monday, African Energy Chamber said “This is an extremely timely initiative.”
Covid-19 has accelerated several major trends and dynamics within Africa’s energy sector which are set to significant increase the demand for German capital and technology on the continent.
Energy has been identified by most African governments and financial institutions as a key sector able to support Africa’s economic recovery post-Covid-19. In parallel, global trends toward a cleaner energy transition are now accelerating and Africa is no stranger to the game.
The reshaping of the continent from 2021 onwards provides a great opportunity for German companies and technology to fight energy poverty in Africa and support the natural gas monetization and valorization drive from Mozambique to Senegal, Nigeria, Equatorial Guinea and Tanzania.
Eni Books $8.6 Billion Loss In First Half 2020“The African Energy Chamber is calling on Germany to work with African businesses to lower carbon emissions and support Africa’s path to a net zero future. From gas flaring to gas-to-power and cleantech, Germany has the capital and technology Africa needs to build an inclusive and sustainable energy future,” declared Nj Ayuk, Executive Chairman at the African Energy Chamber. By engaging not only with African governments but with the continent’s entrepreneurs and private companies, German stakeholders can structure the deals who will ensure a successful future for the German-African energy cooperation. German technical know-how and technology is increasingly looked after when it comes to assessing climate change risks and opportunities in business planning, and supporting public policies embracing decarbonization. Germany’s appetite for Africa has already translated into landmark projects and deals across the continent. In West Africa, Siemens is currently supporting Nigeria in raising its electricity capacity of 25GW under the country’s Presidential Power Initiative. Meanwhile, Voith Hydro and the Commerzbank recently joined Angola’s Caculo-Cabaça Hydropower hydroelectric project to support CGGC in completing the 2172MW power facility by 2024. An increasing number of German SMEs are also involved in landmark gas and power projects, including the Akinokien LNG receiving terminal in Equatorial Guinea. “We need to foster a candid and constructive dialogue with a broad range of German and African stakeholders on investment, energy poverty, the creation of an enabling environment for private businesses and the implementation of free market policies that benefit the poor and emerging African middle class,” concluded Nj Ayuk. Register for the webinar here: https://bit.ly/30oT8m9 Source:www.energynewsafrica.com
Equatorial Guinea: African Energy Chamber, Ministry Of Mines And Hydrocarbon Discusses Energy Developments During Covid-19
The African Energy Chamber has held a bilateral discussion with the Ministry of Mines and Hydrocarbons of Equatorial Guinea , led by H.E Gabriel Mbaga Obiang Lima, alongside the Director of Hydrocarbons, Robustiano Eyegue Ndong and NJ Ayuk, the Executive Chairman of the African Energy Chamber.
The Chamber sought to understand the state of the hydrocarbon sector in the country and was briefed by the Minister and the Director on immediate and near-term plans by the Ministry.
Equatorial Guinea has moved its Year of Investment program to 2021, with plans to add many more investments opportunities and projects, while taking into consideration the challenges of Covid-19. For instance, the Ministry is continuing its mining drive-in with a strong focus on the mainland and expects to drive new mining programs in 2021.
The Minister agreed with the Chamber that Covid-19 has been a great disruptor to the energy sector. The Chamber urges the Equatorial Guinean government to continue working with oil and gas operators to find ways to ensure operations continue.
The Minister advised the Chamber that the rapid development of the Alen unitization project operated by Noble Energy will be delayed until 2021. This is liquid-rich gas and condensate field is located in Block O, about 32km off the east coast of Bioko Island, in Equatorial Guinea. However, the Alen backfill gas project into EGLNG remains on track, with the project scheduled to come online in the first quarter of 2021.
When pressed on the rapid approval of Chevron acquisition of Noble Energy, the Minister advised the Chamber that the Ministry is currently studying the transaction as it pertains to Equatorial Guinea and will respond in due course taking into consideration compliance with the laws and regulations of the country as well as binding legal instruments like the Production Sharing Contract.
On the Gas Mega Hub, the Chamber was informed that Equatorial Guinea has contracted UK-based firm Gas Strategies to continue working on a revised Gas Master Plan as the Minister believes it is an important step towards the country developing a timely, economic and equitable plan for to monetise gas, and with a clear vision towards having a Gas Mega Hub anchored around Punta Europa.
The Chamber commends the development of gas, as LNG stands to be a game changer in the local, regional and international energy markets. It also puts Equatorial Guinea in line with other members of the Gas Exporting Countries Forum, of which Equatorial Guinea is a member, when it comes to monetizing gas.
The Minister advised that exploration activity is still ongoing in the country, with Kosmos Energy likely to proceed with a drilling campaign in 2022. Furthermore, Trident Energy started a 4D seismic survey over its Block G assets, which contain the Ceiba and Okume fields offshore with a potential to drill three wells in 2021.
Finally, the Ministry is engaged in discussions with Venezuelan state company PDVSA on the upstream and the downstream sector.
Ghana: Dr Kwame Ampofo Speaks On How Ghana Would Have Struggled To Fight COVID-19 If There Were Power Crisis“Equatorial Guinea is an important oil and gas player and continues to be a great partner in advancing the relationships with investors while promoting local content. The Chamber welcomes this dialogue and we remain committed to more engagements with African energy leaders because this is vitally important to the private sector.” said NJ Ayuk “The African Energy Chamber, supported by leading energy companies, is confident that by working together, we will ensure win-win opportunities as well as engage candidly on serious issues with African governments. These frank, no-holds-barred conversations concerning our energy industry can guide African governments to create an enabling environment that is effective for investors and citizens alike,” concluded Ayuk The African Energy Chamber periodically holds bilateral discussions with governments and institutions on energy issues in Africa. These discussions are important for leaders and investors to engage in discussions of the most important economic and commercial issues, including investment in oil and gas, infrastructure development, local content, and enabling policies that make in country operations better.
Ghana: Free Electricity Starts August 1-ECG
Ghana’s power distribution company, Electricity Company of Ghana (ECG) has issued a guideline for the implementation of free electricity for lifeline customers for the next five months as announced by the country’s President H.E Nana Akufo-Addo last week.
A statement signed by the Managing Director of ECG, Kwame Agyeman-Budu announced that customers will begin to enjoy free electricity from tomorrow, August 1.
Explaining the modalities, Mr Agyeman-Budu said customers on smart prepaid meters would be automatically credited each month with their free lifeline units. Customers on non- smart prepaid meters would have to visit their vending points to recharge in order to receive their free lifeline units for each month.
“With regards to postpaid lifeline customers, their bills from August 2020 will indicate the GoG absorption of their lifeline consumption,” he added.
Mr Agyeman-Budu assured consumers and stakeholders that ECG would implement the directive to the letter.
According to the Deputy Minister for Energy, William Owuraku Aidoo, the free electricity for lifeline customers would cost the government about GH¢60 million.
Source:www.energynewsafrica.com
Source:www.energynewsafrica.com Eni Books $8.6 Billion Loss In First Half 2020
Italian oil and gas giant Eni has recorded a net loss of €4.4 billion ($5.2 billion) in the second quarter of 2020 and €7.34 billion ($8.6 billion) in the first half 2020, compared to a profit of €424 million ($497.1 million) in the same period last year.
Eni has also cut its capex guidance for 2020 by 35 per cent.
This was due to the recognition of pre-tax impairment losses at non-current assets for €3.4 billion (of which €2.8 billion in the second quarter) mainly relating to oil gas assets and refinery plants, due to a revised outlook for oil and natural gas prices and product margins, equaling to a post-tax amount of €3.6 billion that includes the write-off of deferred tax assets (of which €3.5 billion booked in the second quarter).
Net result was also affected by a post-tax loss on stock of €1 billion due to the alignment of the book value of inventories to current market prices.
The Italian company said that its quarterly results were negatively and materially affected by the combined impact of the ongoing economic recession due to the COVID-19 effects on production, international commerce and travel, with a major impact on energy demand, and by oil and gas oversupplies.
Output Down
Hydrocarbon production was 1.71 million boe/d in the second quarter 2020, down by 6.6% compared to the second quarter of 2019 (1.74 million boe/d in the first half, down by 5.1%).
Net of price effects, the decline was due to COVID-19 effects and related OPEC+ production cuts as well as lower gas demand, mainly in Egypt.
The positive performance reported in Nigeria, Kazakhstan and Mexico and the additions due to the purchase of mineral interests in 2019 in Norway, more than offset the lower volumes in Libya driven by an anticipated contractual trigger, geopolitical instability and lower entitlements/spending.
Rebound In 2021
Following positive trends recorded in the oil market in June and July, Eni is assuming a gradual recovery in global consumption of hydrocarbons and power in the second half of the year, particularly in Eni’s reference markets. Eni expects a rebound in energy demand in 2021.
Having considered the prospect of the pandemic having an enduring impact on the global economy and the energy scenario, management revised the company’s outlook for crude oil prices, reducing the long-term price of the marker Brent to 60 $/barrel in 2023 real terms compared to the previous assumption of 70 $/barrel.
For the years 2021-2022, Brent prices are expected at 48 and 55 $/barrel respectively (compared to the previous assumptions of 55 and 70 $/barrel). Spot gas prices at the Italian hub have been reduced by 30% in the long-term, while refining margins are expected to decline in the short term.
Capex Cuts
Eni’s review of the industrial plan and the group strategy in the short-medium term foresees capex cuts of approximately €2.6 billion for 2020, approximately 35% lower than the initial capital budget; the new capex guidance for 2020 is €5.2 billion.
Anticipated reductions of €2.4 billion in 2021, i.e. 30% lower than original plans. Capex revisions almost fully focused in the E&P segment.
Eni also expected production of 1.71–1.76 mboe/d in 2020 including OPEC+ cuts, in line with the earlier guidance, due to capex curtailments in response to the COVID-19 crisis, a lower global gas demand also impacted by the pandemic effects and finally extension of force majeure in Libya for the FY 2020.
Source:www.energynewsafrica.com
Libya: NOC Worried About Presence Of Mercenaries At Oil Installations
Libya’s National Oil Corporation (NOC) has expressed deep concerns about the continuing militarization of its oil facilities and the heavy presence of foreign mercenaries at various oil fields and ports in the eastern and southern parts of the country.
A statement issued by NOC noted that the number of mercenaries at the Ras Lanuf petrochemical complex has recently increased.
Their presence constitutes a threat to the safety of workers and industrial facilities within the complex. There are also a large number of military personnel billeted in worker housing inside the residential area of Ras Lanuf town, in a flagrant violation of the law, privacy and security of worker housing.
In another blatant violation of the law, on July 26 the Petroleum Facilities Guard (PFG) forcibly seized large quantities of jet fuel from fuel storage tanks at 103 Field airstrip belonging to Zueitina Oil Company. The fuel was then taken offsite in two fully laden trucks.
Further, on July 25 a military aircraft landed at Zueitina port with uniformed personnel onboard, who inspected the runway in preparation for military use. Afterwards, foreign mercenaries entered and occupied the worker housing at Zueitina port.
NOC has also received reports of large numbers of mercenaries with military vehicles occupying the residential area of the Zallah oil field. Another group is occupying a Schlumberger Company camp located close to the field.
To protect Libyan oil facilities, NOC continues to monitor the situation closely. Illegal activities taking place in and around NOC facilities are being documented. NOC stated it “will not hesitate to seek prosecution for those who damage Libya’s sole source of revenue.”
NOC reiterated its calls for the withdrawal of mercenaries and the demilitarization of oil facilities so that its workers can carry out their work without putting their lives in danger. “Their safety as well as the security of oil facilities must remain paramount,” NOC said.
Ghana: Dr Kwame Ampofo Speaks On How Ghana Would Have Struggled To Fight COVID-19 If There Were Power Crisis
A former Chairman of Energy Commission, Ghana’s energy sector regulator, Dr Kwame Ampofo has underscored the need for the West African nation to pay attention to the energy sector and manage it efficiently so that there will be power available at all times.
Dr Ampofo, who used to be the Managing Director of state-owned Tema Oil Refinery, said it would have been a disaster if the country’s energy sector were in crisis like it happened between 2012 and 2016 and had to deal with the coronavirus pandemic.
“It would have been a disaster if we were in the ‘dumsor’ (local parlance for load shedding) days. You will see that hospitals can’t work. Ventilators can’t work. You lockdown cities and people are at home and there is no power. There is likely there will be no water because you need power to produce water.
“The lessons we have, as individuals and as government, are that we must take the energy sector very seriously and ensure that there is stability in power and that the power sector is managed in a way that we will never return to the ‘dumsor’ days.”
Ghana’s five years’ power crisis, which started easing in the last quarter of 2016, led to many employees being thrown out of jobs.
According to a research findings by the Institute of Statistical and Economic Research (ISSER) of the University of Ghana, the country lost about GH¢3 billion as result of the power crisis.
It was established that 885 SMEs lost GHc250 million, while 55 folded up with its attendant job losses.
The previous government brought in the Ameri Power and Karpowership and signed contracts with other Independent Power Producers all in an attempt to address the power situation.
Speaking in an exclusive interview with energynewsafrica.com, Dr Ampofo explained why the former President of Ghana, John Dramani Mahama, took the decision to increase the country’s installed capacity at the time.
Click on the video below:
Source:www.energynewsafrica.com
Tullow Set To Book US$1.7 Billion Impairment Over Lower Oil Prices
Africa focused oil and gas company, Tullow, is set to book between US$1.4-1.7 billion in impairments before tax in its half-year results over decline in oil prices.
Tullow, which had a market capitalisation of around US$508 million after markets closed on Tuesday, had US$3 billion in net debt and untapped liquidity and free cash of around US$500 million.
The company plans to spend around US$365 million on investments and decommissioning this year.
Tullow added in a trading statement that its 2020 cash flow was forecast to break even at current prices.
It has hedged 60 percent of its sales this year at a floor price of US$57 a barrel and 44 percent of next year’s at a floor of US$51 a barrel.
“As a result of lower near-term oil price forecasts and a revision in the Group’s long-term oil price assumption from US$65/bbl to US$60/bbl, the Group expects material impairment and exploration write-offs to be recorded at the half-year in the range of US$1.4-1.7 billion (pre-tax),” Tullow said in a statement posted on its website.
The company said the impact of COVID-19 has been managed safely across its business with no impact on its operated production.
Mozambique: Sasol Relinquishes Blocks 16 & 19 License“Group working interest production in the first half of 2020 averaged 77,700 bopd in line with expectations; full year guidance has been narrowed to 71,000-78,000 bopd reflecting continued good performance across the portfolio. “Ghana operational performance has been strong in the first half with uptime on both FPSOs in excess of 95 percent. Completion operations on the Ntomme-9 production well at TEN are ongoing; the well is due onstream in August.” The impact of COVID-19 on the Kenya work programme and fiscal framework has led the Joint Venture to call force majeure on its licences which will delay FID and impact the ongoing farm-down process. Constructive discussions are ongoing with the government regarding next steps. In Suriname, the drilling of the Goliathberg-Voltzberg North prospect (GVN-1) in Block 47 is planned for the first quarter of 2021. A rig is expected to be contracted shortly for this Upper Cretaceous prospect. Rahul Dhir, Chief Executive Officer, Tullow Oil plc, commented: “Since becoming CEO on 1st July, I have been impressed by the quality of Tullow’s people and the potential of our assets and I am confident that we can build Tullow into a competitive and successful business once again. Despite the challenging external environment in the first half of the year, Tullow has performed well; delivering production in line with forecast, agreeing the sale of the Ugandan assets and re-shaping the Group’s structure and cost base. In the second half of 2020, our focus will remain on continuing to deliver safe and reliable production from West Africa, reducing debt and building a cost effective and efficient organisation that can compete in a low oil price environment.” Source:www.energynewsafrica.com
Angola, OPEC Are A Strong Pillar Of Market Stability
The OPEC-Angola discussions that took place last week is a major pillar of the strong dialogue and cooperation between OPEC and African producing nations.
In a statement the African Energy Chamber welcomed these discussions and encouraged more collaboration as Angola and others will benefit from market stability.
Such a dialogue is key for compliance with the OPEC global production cuts deal of April, to which all of OPEC’s African member countries have agreed to.
Angola’s support to global market stability and energy cooperation is significant, and gives confidence to operators and future investors seeking to do business in Africa.
Ghana: 4th Ghana Energy Awards Launched; Nominations Opened“In December 2018, OPEC Secretary General Mohammed Sanusi Barkindo made a historic visit to Angola and committed to working with its leadership to improve the industry and strengthen its relationship with OPEC. The OPEC-Africa dialogue has brought this relationship to a new level. African voices are heard and advocated for within the industry’s most influential institution, ensuring that the continent’s interests are represented,” NJ Ayuk, Executive Chairman at the African Energy Chamber stated. “The Government of Angola, and the country’s Ministry of Mineral Resources and Petroleum have always been strong participants in the global energy dialogue between Africa and institutions such as OPEC. Angola has public officials committed to making energy work for Africans, and to fighting energy poverty in Angola. Such move makes our industry better for Africans and for investors,” declared Sergio Pugliese, President of the African Energy Chamber in Angola. Under the leadership of His Excellency President João Lourenço and his Minister of Minister of Mineral Resources and Petroleum H.E. Diamantino Azevedo, Angola has embarked on a set of bold and market-driven reforms for over two years now. The country is becoming increasingly competitive for regional and international investors and has sent strong signals of its openness to investments, commitment to local content development and determination to fight corruption. Source:www.energynewsafrica.com
Senegal, Equatorial Guinea Set To Discuss Post-Covid-Investments In Africa With Germany’s Private Sector
The Germany Africa Business Forum (GABF) is organizing an exclusive webinar on the topic “Business in Africa after Covid-19” on August 6th, 2020, at 16:00 Central European Time.
The high-level panel will be expanded with an opening speech by the Minister of Mines & Hydrocarbons of Equatorial Guinea, H.E. Gabriel M. Obiang Lima.
“We are proud to announce that H.E. Gabriel M. Obiang Lima, a true champion of German-African relations, will be enriching our webinar. We are excited that through his expertise and leadership, His Excellency Obiang Lima will bring fresh perspectives to the discussion”, said Sebastian Wagner, co-founder of the GABF.
Further, the GABF is happy to confirm the participation of Senegal’s Director General for Cooperation & Financing, Mr. Ibrahima Mané, as a keynote panel member.
Ghana: VRA Should Lead In Promoting Solar, Wind Energy Generation-Kalitsi“German businesses have been important cooperation partners of Senegal for a long time. We are thus honored by Mr. Mané’s participation in our discussion”, added Mr. Wagner. Other confirmed panelists are Mrs. Onyeshe Tifase of Siemens, Mr. Tim Gengnagel of the Rwanda Development Board and Mr. Kenneth Reed of the GEA Group. The panel will discuss the business opportunities and possibilities arising post-COVID between Germany and Africa. Germany’s strong capabilities in LNG, petrochemicals, gas to power, biomass, and renewable energy have become central to the African energy agenda, with German expansion through the construction of world class facilities in Senegal, Rwanda, Equatorial Guinea, Kenya, Nigeria, Angola and other African countries. In 2019, the GABF launched a multi-million Euro funding commitment to invest in German energy startups that focus on Africa. The funding commitment, which pledges funds to German startups with exposure to African energy projects, is the first such intra-regional initiative. It goes in line with Germany’s renewed focus on Africa, with the Federal Ministry for Economic Cooperation and Development (BMZ) providing new stimulus to cooperation with the continent through the Marshall Plan with Africa. To attend, please register under: https://bit.ly/3jtrRGP Source:www.energynewsafrica.com
OPEC-Nigeria Talks Discuss Market Recovery After Covid-19
The OPEC-Nigeria Bilateral Meeting that took place last week has sent yet another signal of the strong dialogue and cooperation between OPEC and Africa’s biggest producing country.
Such a dialogue is key for compliance with the OPEC global production cuts deal of April, to which all of OPEC’s African member countries have agreed to.
Nigeria’s support to global market stability and energy cooperation is significant and gives confidence to operators and future investors seeking to do business in West Africa.
“African producers and service companies are the hardest hit when there is volatility in the market. H.E. Mohammed Sanusi Barkindo and Dr. Ayed S. Al-Qahtani leading these discussions sends a strong message that collaboration and sticking to the principles of a stable market is good for Nigeria, its producers and the economy at large,” NJ Ayuk, Executive Chairman at the African Energy Chamber commented in a statement.
“We continue to support the Government of Nigeria, and the country’s Ministry of Petroleum Resources in their effort to improve the environment for investment and getting the industry to rebound post-Covid-19. We believe they are right in making this a priority and we welcome the bold initiatives by Nigeria’s leadership,” he added.
Nigeria’s ongoing Marginal Fields Bidding Round was launched in earlier this year and has already been met with significant success, reportedly attracting hundreds of bidders.
The round is expected to result in a new wave of local content development in Nigeria, a country already widely regarded as the most successful example of local content and capacity building across the continent.
Source:www.energynewsafrica.com
India Reserves 110 Power Plant Equipment, Services For Local Companies
India’s power ministry has issued an order that will bar non-local suppliers from bidding for contracts for supply of about 110 goods and services to power plants.
The non-local suppliers are manufacturers with less than 20% local content.
These tenders, in respect of which there is sufficient local capacity, will be open to only “class–I local suppliers” or those vendors who have more than 50% local content.
The power ministry has issued public procurement order with separate lists of products with adequate manufacturing capacity in India and those being manufactured locally under technology license from foreign countries.
The ministry’s latest order dated July 28 mandates that tenders for these 110 equipment and works can be awarded only to local companies with high localisation.
The equipment includes transformers, switch gears, cables and insulators, which are imported in large numbers in India despite available local capacity.
Ghana: Gov’t Will Pay US$1.4 Billion Owed Independent Power Producers Ending Of 2020- Adu BoahenThe ministry’s order is based on a June 4 order of the Department for Promotion of Industry and Internal Trade (DPIIT) that provides for compulsory purchase preference to local suppliers. The order will apply to procurements made by central and state government companies and on projects funded by Power Finance Corp and REC Ltd. The order has identified another 69 products and services that are being manufactured under license from foreign manufacturers holding intellectual property rights. These can be sourced from class-II local suppliers with localisation content between 20% and 50%. “Only class-I local supplier and class-II local supplier shall be eligible to bid in procurement undertaken by procuring entities, except when Global Tender Enquiry has been issued. In Global Tender Enquiries, non-local suppliers shall also be eligible to bid along with class-I local suppliers and class-II local suppliers,” the order said. The order has advised the state-run entities to revise their tender documents. It has also advised the PSUs to allow participation from only those foreign firms which set up manufacturing base in India. In case of technology partnerships, the PSUs should insist for technology transfer. The power ministry’s July 2 order has put in place an effective ban on imports from prior-reference countries like China and Pakistan, which require permission. All other imports will be tested at government- approved labs. The department of expenditure last Thursday amended its General Financial Rules, 2017, requiring bidders from a country sharing land borders with India to register to be eligible to bid for PSU contracts. In 2018-19, India imported Rs 71,000 crore worth of power equipment, of which Rs 21,000 crore are Chinese. The ministry of power’s July 2 order has mentioned possibilities of cyber attacks on power system through ‘trojans’ embedded in imported equipment, which can have catastrophic effects and the potential to cripple the entire country. Source:www.energynewsafrica.com
Saudi Arabia Likely To Cut Sept Crude Oil Prices To Asia
Top oil exporter Saudi Arabia is likely to cut its September official selling price (OSP) for crude sold in Asia, according to industry sources.
Five sources from Asian refineries on average expect the September OSP for flagship Arab Light crude to fall by 61 cents a barrel, though forecasts range from a cut of $1 to 20-30 cents, a Reuters survey showed.
Slow demand recovery amid the second wave of COVID-19 infections has depressed spot prices for Middle Eastern crude this month, while Asia’s refining margins remained weak, they said.
Although the monthly average of cash Dubai’s premium to swaps dipped by only 6 cents this month, DME Oman and cash Dubai this week turned to discounts to swaps for the first time since May, data compiled by Reuters showed.
Prompt Dubai has flipped from backwardation into contango in late July. The contango structure, where prompt prices are lower than future prices, usually indicates an immediate oil surplus.
Asia’s margins for gasoline, jet fuel and high sulphur fuel oil weakened in July, while cracks for naphtha, gas oil and low sulphur fuel oil showed improvement.
Saudi crude OSPs are usually released around the fifth of each month, and set the trend for Iranian, Kuwaiti and Iraqi prices, affecting more than 12 million barrels per day (bpd) of crude bound for Asia.
State oil giant Saudi Aramco sets its crude prices based on recommendations from customers and after calculating the change in the value of its oil over the past month based on yields and product prices.
Saudi Aramco officials as a matter of policy do not comment on the kingdom’s monthly OSPs.
South Africa: COVID-19: Sasol, Anglogold Ashanti, Others Join Forces To Distribute Hand Sanitisers To Communities
Integrated oil and chemical company Sasol, Sibanye-Stillwater, AngloGold Ashanti, and Imperial Logistics have formed a strategic partnership which will see Sibanye-Stillwater distributing hand sanitisers produced by Sasol to schools, health facilities and taxi ranks within Sibanye-Stillwater’s and AngloGold Ashanti’s host and labour sending communities in South Africa.
With infections and COVID-19 related deaths escalating and hospitals facing the challenge of rapidly rising admissions, the partnership is a just-in time intervention by the four companies.
Sibanye-Stillwater CEO, Neal Froneman said; “the safety, health and wellbeing of our employees is our primary concern and our focus of providing a safe working environment is unwavering.
We also recognise the need to work with government to support communities that host our operations in managing the scourge of COVID-19. Our contribution will benefit schools, health facilities and taxi ranks and we welcome the collaboration with Sasol, Imperial and AngloGold Ashanti to support local communities.”
Sasol, AngloGold Ashanti and Sibanye-Stillwater will jointly share the costs of producing the hand sanitisers with Imperial –South Africa’s leading outsourced, integrated freight management, contract logistics company -committing to distribute the hand sanitisers to communities where Sibanye-Stillwater and AngloGold Ashanti operates in the Free State, Mpumalanga, North West, Limpopo and Gauteng provinces. The programme will also be extended to some regions in the Eastern Cape.
Sasol has appointed the toll manufacturer and will also oversee the production, packaging and preparation for safe transportation of 94,550 liters of hand sanitiser.
Thabiet Booley, Senior Vice President of Sasol’s Base Chemicals division said: “Sasol recognises its duty and responsibility to support our customers, communities and society at large in these challenging and uncertain times. Through our strategic partnership with Sibanye-Stillwater, AngloGold Ashanti, and Imperial Logistics, we are pleased that our internally produced sanitisers will provide Sibanye-Stillwater’s and AngloGold Ashanti’s host and labour sending communities with hand disinfection hygiene support to reduce the risk of COVID-19.”
“The partnership aims to augment the impact of our relief efforts, and importantly, enhancing general hand hygiene, which remains an effective line of defence,” Dr. Bafedile Chauke, AngloGold Ashanti Vice President: Health, said. “As we tackle the current unprecedented health emergency, it is crucial that we protect the most vulnerable in our country.”
“We are united in the mission to keep communities safe from infection,” adds Imperial Group CEO, Mohammed Akoojee. “We are honoured and humbled to play a part in delivering much-needed goods and some peace of mind in these highly uncertain times.”
Source:www.energynewsafrica.com